Highly Compensated Employee 401k 2024. I got an email from work today stating that due to the fact i was a “highly compensated employee” last year, i will be getting a check from fidelity for ~$4k for my over contribution to my 401k. Highly compensated employees (hces) are employees who earn more than the irs maximum allowable compensation for a 401(k) of $155,000 ($150,000 for 2023), or who own more than 5% of a business.
Final thoughts on 401k limits for highly compensated employees. The irs defines a highly compensated employee as:
Newfront’s Joni Jennings Covers How To Make Correct Hce Determinations In This Blog Post.
The main attraction of 401 (k) plans is the amount you can contribute;
In 2024, The 401 (K) Contribution Limits Are $23,000, Or $30,500 If You're 50 Or Older.
Those 50 And Older Can Contribute An Additional $7,500.
Hces are typically executives, managers, or other highly skilled or specialized employees who earn a higher income than other employees within their company.
In 2024, The 401 (K) Contribution Limits Are $23,000, Or $30,500 If You're 50 Or Older.
An hce is any employee who meets either an ownership test or a compensation test at any time during the plan year in question or in the immediately preceding plan year.